Our industry has long touted, with total justification, that, unlike an ad agency, we do the creative work for free. In my PPAI/ASI seminars, I preach how to position yourself and your company from the very first meeting. Stealing from that seminar, I quote myself, suggesting how you present your value proposition and differentiator to your prospects.
“Ms. Jones, our company does the creative work in developing your programs and campaigns for no charge, no creative service fee. Our team of creative designers lend their talents and experience to every project. We do this in exchange for the understanding that you will award us the opportunity to execute the program, no matter how big or small, and deliver the final product.”
You are telling them that you make your money on the product, not on the creative. Whereas an advertising or sales promotion agency will charge hefty creative, art and development fees, then pull down 18-25 percent of the placing of the ads etc., you are giving true value by not charging for creative.
I am sure you have questioned how a marketer can call something free if, in fact, you are paying for it. How can you say the airline gives you free snack after charging you $500 for a flight? How can they waive a $250 change fee if they don’t publish that fee? The reality is that for something to be free we need to have some understanding of the “true value.” The government requires truth in advertising and any claims in price need to be compared to the suggested and published retail price.
I have written about this before, I have cited many distributors who, over the years, have tried to charge for creative. I have cited how we have collectively trained our buyers to expect the creative for free and “take us all for granted.” How can you ask a client to pay for your creative services if the “vendors” (don’t call me vendor) before you have done it all for free? It is tough to buck tradition but, as an industry, we need a collective differentiation from commodity buying on the internet. We either change the paradigm or eventually suffer the consequences. The very “C” handle coffee mug you prescribe as a solution to a need the client has is a creative solution. Some are more mundane than others, but all require your expertise and creative thinking.
What we lack is the constant reinforcement to the client that we are giving them the creative for free. So, if we are, let’s tell them. Let’s put a creative development fee on every invoice. Make it a line item, give it a code number. Call it up on every invoice. Then, make it an N/C, a no charge item. Buyers will see it all along the financial chain. They will see it over and over and get the reinforcement that there is more to you and your company than being a commodity vendor. Were your normal invoice to go through purchasing, or even need a higher up executive office approval, all they see is an invoice for “stuff” from a vendor. With the addition of a creative services or development fee, the implication is that there is more to this transaction than the simple purchase of an “item.” Over time, if we all added this line, there would be a gradual paradigm shift. Who knows, one day we may even enter the cost for creative and not extend it to the last column. Imagine posting a price of $250 for a few hours of creative, but not adding it to the total. Better yet, the day could come that you do extend this cost into the total column.
We need to step up our industry efforts, but you can go it alone. If you are an agency, if you are a consultant, then add the single line to every invoice. You might not see it in your income, but you will see it in how the customer views you, understands your value and relationship and stays loyal to you based upon your service as opposed to getting the cheapest price.
Creative service fee: 2 hours @ $125 Extension: No charge.
The bottom line, add a line!
Joel D. Schaffer, MAS is CEO and Founder of Soundline, LLC, the pioneering supplier to the promotional products industry of audio products. Joel has 48 years of promotional product industry experience and proudly heralds “I was a distributor.” He has been on the advisory panel of the business and marketing department of St. John’s University in New York and is frequent speaker at Rutgers Graduate School of Business. He is an industry Advocate and has appeared before the American Bankers Association, American Marketing Association, National Premium Sales Executives, American Booksellers Association and several other major groups. He has been a management consultant to organizations such as The College Board and helped many suppliers enter this industry. He is a frequent contributor to PPB and Counselor magazines. He has facilitated over 200 classes sharing his industry knowledge nationwide. He is known for his cutting humor and enthusiasm in presenting provocative and motivating programs. He is the only person to have received both the Marvin Spike Industry Lifetime Achievement Award (2002) and PPAI’s Distinguished Service Award (2011). He is a past director of PPAI and has chaired several PPAI committees and task forces. He is a past Chair of the SAAGNY Foundation, Past President of SAAGNY and a SAAGNY Hall of Fame member. He was cited by ASI as one of the 50 most influential people in the industry.